Group 1 - The company has received feedback from its internal rectification team confirming that the current trial progress is below expectations, and its subsidiary Tianjin Weiming is expected to be unable to resume normal production and operations within three months [1][2] - As a result of the above situation, the company's stock will be subject to "other risk warnings," changing its name from "Weiming Pharmaceutical" to "ST Weiming," with the stock code remaining "002581" and the daily price fluctuation limit changing from 10% to 5% [1][2] - The suspension of production and sales by Tianjin Weiming, which is a significant subsidiary responsible for the production and sales of interferon drugs, has a substantial impact on the company's operations, accounting for 60.09% of the company's revenue and 9.8% of the consolidated net profit [1][2] Group 2 - The company's board of directors acknowledges the adverse effects of the situation and plans to take effective measures to mitigate the impact, including promoting product sales in other markets and increasing efforts in market development and new product development [2] - Other subsidiaries of the company are operating normally and maintaining production capabilities, while the company aims to optimize management, reduce expenses, control costs, and enhance business profitability to ensure stable operations [3] - During the period of other risk warnings, the company will accept investor inquiries through phone and email, ensuring timely responses while adhering to insider information confidentiality regulations [3]

Core Viewpoint - Shandong Weiming Pharmaceutical Co., Ltd. is facing significant operational challenges due to regulatory actions against its subsidiary Tianjin Weiming, which has been suspended from production and sales, impacting the company's revenue heavily [1][3][5]. Group 1: Regulatory Actions - Tianjin Weiming was subjected to production and sales suspension by the Tianjin Drug Administration due to non-compliance with Good Manufacturing Practice (GMP) standards [3]. - The core product, human interferon α2b spray, has faced procurement suspensions from Inner Mongolia and Tibet due to unsatisfactory inspection results [2][3]. - The company has previously experienced similar issues, with the Jiangxi Provincial Procurement Office announcing that the interferon α2b spray did not meet biological activity standards [4][8]. Group 2: Financial Impact - In 2024, Tianjin Weiming is projected to generate revenue of 217 million yuan, accounting for 60.09% of Weiming Pharmaceutical's total revenue [3][6]. - The recall of the interferon α2b spray has already reduced the company's revenue by 23.17 million yuan in 2024, with further implications for 2025 sales [5]. - Weiming Pharmaceutical has reported continuous losses for three consecutive years, with a record loss of 332 million yuan in 2023 [6][8]. Group 3: Product and Market Dynamics - The interferon product line is crucial for Weiming Pharmaceutical, contributing significantly to its revenue, with a gross margin of 79.92% in 2024 [7]. - The company has been involved in a competitive procurement process for interferon products, with the interferon α2b spray being the only product to win a bid at a price of 33.58 yuan for a specific volume [8]. - The procurement process, known as "small country procurement," has introduced uncertainties regarding the future of the company's core products due to the recent regulatory issues [8][9]. Group 4: Stock Market Reaction - Following the announcement of the production suspension, Weiming Pharmaceutical's stock fell to a limit down, closing at 6.68 yuan per share, with a total market capitalization of 4.407 billion yuan [10].